Sony Ericsson swallows $317 million pre-tax loss as end draws near

Sony Ericsson's tearful breakup continues with more woe as as the venture had to eat a pre-tax loss of €247 million (roughly $317 million). Bosses cited "unfavorable macro-economic conditions" and the Thai flooding as the reasons for the loss. Ericsson probably won't mind having such an unfavorable penultimate quarter with the company, given that it's set to receive €1.05 billion (around $1.9 billion) when Sony buys out its share of the joint telecoms business within the next month.

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Loss in Sony Ericsson impacts Ericsson's fourth quarter results

Thu Jan 19, 2012 2:31am EST

Sony Ericsson reports Q4 loss of EUR 247 million before taxes, reflecting intense competition, price erosion and restructuring charges Results impacted by unfavorable macro economic conditions and effects from the flooding in Thailand Ericsson's share in Sony Ericsson's income before taxes amounts to SEK -1.1 b. in the quarter

Sony Ericsson, the joint venture in which Ericsson (NASDAQ:ERIC) has 50% of the shares and is accounted for according to the equity method, today reports its Q4 and full year 2011 results. Sony Ericsson's loss in the fourth quarter 2011 will impact Ericsson's operating income with SEK -1.1 b. in the quarter.

On October 27, 2011, it was announced that Sony will acquire Ericsson's 50% share of Sony Ericsson. The transaction is expected to take place late January to February 2012. As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 b.

Ericsson will present its fourth quarter and full year 2011 report on January 25, 2011, at 07.30am CET.